Bitcoin hasn’t hit $20,000 for two years now and some believe that the pioneering cryptocurrency will never return to that level. However, according to one analyst, Bitcoin’s price return to $20,000 is a matter of when, not if. While they don’t expect this crash to happen anytime soon, they cautioned that the possibility shouldn’t be ruled out at this point.
Bitcoin Price Could Hit $20,000
Crypto analyst “Without Worries”, in a new analysis on the TradingView website, has highlighted the possibility of Bitcoin price crashing to $20,000 again. The analysis focuses on Bitcoin price on the 3-week chart, which has shown interesting insights into the movement of the digital asset.
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According to the crypto analyst, some important events have occurred, giving rise to hopes for this to happen. One of them is the Stochastic RSI which has made notable movements. As the crypto analyst points out, the Stochastic RSI rose above 80 and then eventually dropped back to 50.
This development of the Stochastic RSI, which is one of the most important indicators of bullish and bearish cycles, shows that a resistance is building. At this point, the analyst advises investors to watch for confirmation of the resistance that could signal the beginning of the downtrend.
Looking back, the crypto analyst revealed that the resistance had already appeared in 2018 and 2019. What followed was a downtrend. Then, in 2021, the resistance appeared, and each time, there was an average drop of 70% after the resistance.
If this resistance were to reappear, historical performance would suggest that the Bitcoin price would follow the same trend. In this case, a 70% drop from the current all-time high would mean that the BTC price would return to the $20,000 level again. However, according to the analyst, this will only happen in a few months.
Will Bitcoin Rebound Until 2025?
Addressing the question of Bitcoin continuing its rise until 2025, the crypto analyst does not believe that this is possible. He believes that with so many calls for the pioneering cryptocurrency to reach new highs, it is not going to happen.
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However, the analyst does not believe that the market has reached its peak at this point. He points out that the market is still in fear, which is not the ideal time for the market to reach its peak. Instead, the peak will come when the market is in euphoria. “When this RSI resistance is confirmed, there will be no longer any long-term opportunities in the market until 2027 at the earliest,” the analyst concluded.
Featured image created with Dall.E, chart by Tradingview.com
